London’s property market could benefit from an emerging class of Iranian buyers who will invest up to £6bn on overseas property over the next five to 10 years, according to research by London estate agent Rokstone.
Data from New World Wealth records 32,000 high-net-worth Iranian individuals worth more than £2m, with 65 worth £70m and four billionaires. Rockstone calculates up to 50 of these investors having £100m to spend on overseas real estate.
Rokstone reports that there will also be a 25% increase in Iranian buyers looking for homes in London over the next 12 to 24 months following the lift in sanctions in Iran.
The British Embassy in Tehran has now reopened and the UK Foreign Office has changed its status to permit limited travel.
These factors, coupled with British Airways reintroducing direct flights to and from London, Iran Air’s £17.4bn deal with Airbus to purchase 118 jets, and London’s sizeable Iranian expatriate community, will make the city a favourable place to invest.
London’s comparably low oil and gas prices, education system and stable economy are also drivers, says Rokstone.
Iranian-born Becky Fatemi, managing director of Rokstone, said: “London will be Iranians’ top location for investing in real estate. Culturally if you are wealthy in Iran, you invest in property and jewellery and gold as long-term assets. Historically there are deep ties between the UK and Iran. Britain was the colonial power in Iran and it was British firms that first exploited Iran’s oil reserves.
“Between 1945 and 1979, the Shah of Iran, his royal court and the business elite owned luxury residential property in London and the home counties.
“Alternative locations have less appeal. Historically, rich Iranians also invested in New York and Los Angeles, but US government primary sanctions remain in place so these choices are not available.
“Dubai on the doorstep will also be popular but it cannot compete with London’s educational system or cool summer climate. The other historic ties are with Germany, Paris, the French Riviera and Switzerland but London is safer than these since a lot of properties in the capital are in conservation areas where building alterations are restricted so values hold and outperform continental Europe.”
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